What key insights led to the founding of Capital One in 1994?
Replied byNigel Morris
Co-founder & Managing Partner at QED Investors
Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: Alexandria, Virginia, United States
Started: 2007
We noticed that insurance companies used risk-based pricing, charging higher premiums to reckless drivers. Credit cards in 1986 charged everyone a flat nineteen percent interest rate regardless of risk. We realized we could democratize access and improve economics by testing consumer behavior and pricing cards based on individual risk.
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